Youngs bullish after 'transitional' year.
24 May, 2012
Young's, the London-based pub operator, saw sales grow 25.5% last year following the integration of Geronimo pubs and the sale of its brewing interests. Managed pub like-for-like sales were up 6%, although an upward revaluation of its estate resulted in a small pre-tax loss.
Total sales for the 52 weeks to 2 April grew to £179m, with adjusted pre-exceptional pre-tax profits up 17.4% at £21m.
Chief executive Steve Goodyear said it marked a landmark year with good performance across all areas. The integration of Geronimo, acquired in December 2010, had been completed, managed pub like-for-likes, excluding Geronimo, were up 6.0%, and the disposal of its 40% holding in Wells & Young’s for £15m had produced a clear strategic focus on growth through premium pubs in London and the South East.
A revaluation of its pubs had produced a large net uplift of £174m to book value. As a result, the company noted that while an upward movement of £203m was recognised in equity, a downward movement of £29m was taken to the income statement as exceptional, resulting in the current period loss before tax of £7.5m.
“Young’s is in very good shape," Goodyear added, although the start of this year has been affected by the dismal weather, with total sales for the first seven weeks up 3.9%, but down 2.0% on a like-for-like basis, including Geronimo. Howver, he said Youngs was excited about the prospects that the Jubilee and Olympic summer would bring.
Overall Youngs runs 242 pubs, of which 154 are managed, including 121 Young’s and 33 Geronimo pubs. Last year it invested £24m in its managed estate.
For full results detaiils, go to www.youngs.co.uk
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